Societe Generale economists describe a quiet week in the UK, with Gilt yields easing as markets trimmed Bank of England (BoE) hike expectations after Governor Bailey pushed back on tightening. Survey data show higher CPI expectations but stable wage expectations, suggesting limited second?round effects. However, falling real household incomes and the energy shock are expected to worsen consumption trends into 2027.

Rates repricing and real income squeeze

“Last week in the UK, it was